Revised PLI/RPLI Incentive structure

F.No: 28-03/2019-LI(2)

Government of India
Ministry of Communications
Department of Posts

(Directorate of Postal Life Insurance)

Chanakyapuri P.O. Complex, New Delhi-110021
Dated: 06.07.2020

Sub: New Promotional and Incentive Structure of PLI/ RPLI - reg

     This is regarding the new promotional and incentive structure of PLI/RPLI, circulated vide PLI Directorate OM No. 28-03/2019-LI dated 19.06.2020 and implemented in Circles w.e.f. 01.07.2020.

2.    In this connection, certain queries have been received regarding procurement of PLI/RPLI business. These have been examined in PLI Directorate and the following is clarified:

Sl No.	Query	Clarification
(i).	Can sales force of PLI/RPLI procure insurance business from outside their parent Postal Division?	(i). Sales force of PLI/RPLI may procure PLI/RPLI business from anywhere in a Postal Circle. (ii). In such cases, PLI/RPLI policy will be indexed at the HO CPC nearest to the address/place of residence of the insurant (iii). No TA/DA will be payable to sales force of PLI/RPLI for procuring PLI/RPLI business.
(ii).	Are Sorting Assistant/AAO/PACO cadre eligible to procure PLI/RPLI business?	Yes, all categories of Departmental Employees drawing salary upto the Level-8 (as per 7 CPC) including MTS,Postman, PA, SA, PACO, IP, AAO, ASP ete. are eligible to procure PLI/RPLI business. ‘The present system of procuring PLI/RPLI business outside office hours by Departmental Employee will continue.

3.    This issues with approval of the competent authority.

Gurvinder Singh
Deputy Divisional Manager-I

F.No: 28-06 /2014-LI
Government of India
Ministry of Communications
Department of Posts
(Directorate of Postal Life Insurance)

Chanakyapuri P.O.Complex, New Delhi-110021
Dated: 03.05.2017

To,
1. All Heads of Circles
2. Addl DG APS
3. Director, RAKPNA
4. All Regional PMGs
5. All Directors PTCs

Office Memorandum
Subject: Revised incentive structure of PLI/RPLI

1. The matter regarding putting in place an appropriate marketing (sales) and incentive structure for PLI and RPLI has beenn receiving attention in the Department for quite some time.
2. Considering the need for professionalism in selling policies and ensuring better after sales service, the matter was discussed during Heads of Circles Conference held from 20th May 2016 to 22nd May 20166 at Hyderabad and thereafter examined by the Postal Service Board in detail.

3. In light of the decisions taken by the Postal Services Board in its 6th meeting for 2016 held on 06.07.2016, the orders for revised Marketing (Sales) structure for PLI / RPLI were issued vide this Office OM of even no dated 10.08.2016.
4. In keeping with the new Marketing (Sales) structure, the incentive payable to PLI sales force has now been revised keeping the following objectives under consideration:

1. Make the incentive structure for PLI sales force into a Group Incentive.
2. Make the PLI incentive structure based on premium income,as against the existing norm of the incentive based on sum assured.
3. Make the PLI incentive structure such that medium to long-term policies are more attractive from sales perspective.

5. Accordingly, the revised incentive structure for PLI sales force is as follows:

5.1. Incentive for PLI Sales Force other than Army Postal Service

5.1.1. Procurement incentive

1. Policies other than Anticipated Endowment Assurance (i.e. WLA, CWLA, EA, Children Policy and Yugal Suraksha:
   
   

   Premium paying term	Incentive Structure
   Up to and equal to 15 Years	4% of first year premium income
   More than 15 years but less than or equal to 25 years	10% of first year premium income
   More than 25 years	20% of first year premium income

   
   

2. Anticipated Endowment Assurance policies:
   
   

   Premium paying term	Incentive Structure
   Less than or equal to 15 Years	5% of first year premium income
   With term beyond 15 years	7% of first year premium income

5.1.2 Renewal incentive: 2% of renewal premium in respect of cash PLI policies of all types to all categories of PLI sales force.

5.1.3 Incentive for Group leaders: Group Leader will be paid 7% of the group incentive i.e. 7% of the total incentive for procurement and renewal payable to the sales force assigned to him/her. Thus, incentive for Group Leader will not be in addition to the incentive payable to the sales force but a part of it.

5.2. For PLI Sales force in Army Postal Service: APS sales force will be entitled to incentive for procurement only. The rate of incentive will be 50% of incentive rates applicable for other categories of sales force as mentioned at para 5.1.1 above.

6. The incentive structure for RPLI remains unchanged as under:
1. 10% of first year premium income towards the RPLl policies procured by sales force.
2. 2.5% of renewal premium income in respect of RPLI policies procured on or after 01.10.2009.

In addition, Sub-Divisional Heads (IPO/ ASPO) shall get 10% of procurement incentive payable to GDS under her / his jurisdiction, on account of verification of RPLI proposals.

7. The revised incentive structure shall come into force from 01.04.2017.

(ViShwapavan Pati) Chief General Manager